Brent crude recorded its largest one-day decline in five weeks on Monday, falling toward $114 a barrel as oil exports from Iraq remained unaffected by Islamic insurgents’ continued advance on Baghdad.
Oil prices rallied nearly five percent amid the crisis in Iraq this month, touching nine-month highs above $115 a barrel last week, but have since faded.
“This reminds me of the Syrian conflict when the market spiked on worries about supply disruptions that never happened,” said Carsten Fritsch, an oil analyst at Commerzbank in Frankfurt. “The supply news isn’t really supporting oil prices – the only thing supporting them is the fear factor.”
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